Finding 1168706 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-09

AI Summary

  • Core Issue: The College failed to include disbursement dates in award notifications for 34 out of 42 students, violating federal regulations.
  • Impacted Requirements: Noncompliance with 34 CFR 668.165(a)(1) regarding timely notification of Title IV fund disbursement details.
  • Recommended Follow-Up: Ensure all future award notifications include disbursement dates or reference the academic calendar for compliance.

Finding Text

Assistance Listing Numbers/Titles: #84.007, Federal Supplemental Educational Opportunity Grants; #84.033, Federal Work-Study Program; #84.063, Federal Pell Grant Program; and #84.268, Federal Direct Student Loans Federal Agency Name: U.S. Department of Education Award Number: N/A Award Year: July 1, 2024 - June 30, 2025 Criteria: Per 34 CFR 668.165(a)(1), before an institution disburses Title IV funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each Title IV program, and how and when those funds will be disbursed. Condition/context: The College’s award notifications for the Fall 2024 semester did not include when the funds will be disbursed. As such, this information was not included in the files for 34 out of the 42 students selected for testing. Cause: The College believed that it was compliant by sending notifications on the day of disbursement. Once the issue was brought to the College’s attention, it modified the award notifications to include the required verbiage; however, the correction was not made until Spring 2025. Effect: If the College fails to comply with the terms and conditions of a Federal award, the Federal awarding agency may impose additional conditions, as described in 2 CFR 200.208, or implement other remedies for noncompliance, as described in 2 CFR 200.339. Questioned costs: None. Identification as a repeat finding: Yes. See 2024-004. Recommendation: The College should continue to include the disbursement date in award notifications or refer to the academic calendar (which includes disbursement dates) in all award notifications. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.

Corrective Action Plan

2025-003: Student Financial Audit Cluster - Special Tests and Provisions: Disbursements to, or on Behalf of, Students (Significant Deficiency) Corrective Action: The College updated its award notification process, which took effect for the Spring 2025 term. All current and future award notifications now comply with 34 CFR 668.165(a)(1). Including the required information regarding when Title IV funds will be disbursed. Referencing the academic calendar, which clearly identifies the official disbursement dates for the term. To prevent recurrence of this finding, the College has implemented the following permanent measures: • Revised Award Notification Templates: All digital and physical award notification templates have been permanently updated to include dedicated fields for the disbursement date or a direct, clear reference to where the student can find the disbursement schedule. • Enhanced Pre-Release Compliance Review: A mandatory two-step review process has been added to the award notification workflow. This step verifies that all notifications meet the “amount, how, and when” Title IV disclosure requirements before they are sent to students. • Mandatory Staff Training: All Financial Aid staff have received and will receive annual training refreshers on the current federal notification requirements, specifically emphasizing the timing of disbursement disclosure, and the use of the updated, compliant templates. • Ongoing Monitoring and Internal Audits: The College will implement a quarterly internal review process where a sample of student award notifications will be checked for accuracy and full compliance with 34 CFR 668.165(a)(1) to ensure sustained adherence. Anticipated Completion Date: 6/30/2026 Contact Person: Joyce Lubeck-Sonenberg

Categories

Student Financial Aid

Other Findings in this Audit

  • 1168699 2025-004
    Material Weakness Repeat
  • 1168700 2025-003
    Material Weakness Repeat
  • 1168701 2025-004
    Material Weakness Repeat
  • 1168702 2025-003
    Material Weakness Repeat
  • 1168703 2025-002
    Material Weakness Repeat
  • 1168704 2025-003
    Material Weakness Repeat
  • 1168705 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.26M
84.268 FEDERAL DIRECT STUDENT LOANS $2.60M
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $260,358
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $114,466
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $74,750
84.033 FEDERAL WORK-STUDY PROGRAM $70,549
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $59,161
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $25,176
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $5,324
43.001 SCIENCE $4,362
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1,485